UCO Bank’s educational loan portfolio stood at Rs 333 crore as on March 31, 2008. The bank plans to extend it to Rs 476 crore in 2008-09, achieving a growth of about 43 per cent.

Allahabad Bank had also witnessed a 30-per cent growth on March 31, 2008 and the portfolio stood at Rs 150 crore. The bank plans to expand it to Rs 300 crore in 2008-09. “Usually April--July is the best period for the sanctioning of loans and the actual disbursements begin post-July,” said a senior bank official at the bank.

The official added that the bank’s educational loan sanctions have almost doubled in the first quarter of the current financial year, compared to the corresponding quarter of the previous year. He also said that the average ticket size of these loans is about Rs four lakh and almost 80 per cent of it is taken without collaterals.

The Hyderabad based Andhra Bank has also set a target to grow by 20-25 per cent this year. The current exposure is at Rs 1,800 crore. Talking about the bank’s future in the segment, a senior bank official said, “We have tied up with a number of universities such as ICFAI, IIBM and some universities in Pune. We offer some discount on interest rate for students in these universities.”